Any business that operate in Texas need to have an EIN in addition to licenses and permits. This unique identifier is necessary for filing the tax return, handling employee payroll and obtaining business loan. Entrepreneurs can apply for an EIN or Tax ID Number in Texas Online or can obtain it through any state agencies with which they are doing their business.
How to obtain an Employer Number in Texas?
Whether you operate as a sole proprietor, a partnership or a limited liability company, it is necessary to pay federal taxes. To do so, you need to register your business with IRS and have to obtain a federal tax ID or employer identification number. Entrepreneurs are legitimately required to have an EIN immediately after registering their business. They also need to apply for the State Tax ID number such as a Texas Taxpayer Number.
How one can get an employer ID in Texas?
If you need a federal tax ID for your business in Texas, the application process is very simple. Your federal tax ID number is also known as Employer Identification Number (i.e. EIN) and is discernible by its nine-digit format. You will be using this EIN in variety of applications such as –
- Opening a bank account of the business entity
- Apply for business licenses
- Hiring employees in the organization and so on.
So, getting an EIN is a way of registering your business with federal government in Texas.
There are several ways to get an EIN in Texas. If you are doing business with state, then government agency in question will provide you with AP-152 Form. You need to fill this application form, answering the questions about your business and your founding members, including their names and address. You need to be prepared to submit your SSN, EIN or individual taxpayer identification number i.e. ITIN. Fill out the application form and print the form and then submit it to the state agency with which you are doing your business.
A state agency representative can also complete the application form on your behalf, as your signature are not required. Non-resident aliens and businesses located outside US do not need to have SSN, ITIN or EIN. In this case, the agency may request a comptroller-assigned the TIN for your business.
How to apply for a Texas EIN?
You can apply for a Texas EIN in three ways i.e. by phone, mail or fax and by online.
- Apply for a Texas EIN via Phone
In this method, you need to answer the questions such as your business and your founding members, including their names and address. One need to answer all these questions via a phone call with the agent on the other end.
- Apply for a Texas EIN Number via Mail or Fax
You can also fill out an application by hand, which takes much more time than the online application form. Once the application form is filled, now send this application form via mail or fax to IRS. This process takes much longer time upto 4 to 6 weeks and you will receive your tax ID or EIN via traditional mail or fax. There is no real advantage to this method, as making online applications is preferred by most of the business owner.
- Apply for a Texas EIN Online
This is one of the fastest and easiest method for applying an EIN. In order to apply for an EIN Online, one need to fill the application form first. One can fill this application form on any device, as long as you have an internet connection. It loads in fraction of seconds and can be filled out in record time, as long as you have all the information you need to complete the application form. The biggest advantage of this, is the amount of time it take for the application to process. If you are filling it online, it can finish processing in less than an hour and you will receive your tax ID or EIN in the email, so that you can start using it right away.